D196 WGU Principles of Financial and Managerial Accounting Study Guide Exam with 55 Multiple Choices Questions and Verified Answers 100% Guaranteed Pass 2025/2026

D196 WGU Principles of Financial and Managerial Accounting
Study Guide Exam with 55 Multiple Choices Questions and Verified Answers
100% Guaranteed Pass



1. What is the effect of a company's accounting department maintaining high eth
e e e e e e e e e e e




ical standards?
e




The company can hire fewer accountants to do the same amount of work. The co
e e e e e e e e e e e e e e




mpany's accounting information will decrease in value.
e e e e e e




The company can report more favorable results in its financial statements. The c
e e e e e e e e e e e e




ompany's accounting information will increase in value.: The company's accounti
e e e e e e e e e




ng information will increase in value.
e e e e e




2. Why might employees be interested in their company's financial accounting inf
e e e e e e e e e e




ormation?

Financial statement data are used to record long term liabilities. Financial s
e e e e e e e e e e e




tatement data provide item-by-e e e




item product cost information. Financial statement data provide detailed int
e e e e e e e e e




ernal budget information.
e e




Financial statement data are often used in determining employee bonuses.: -
e e e e e e e e e e




Financial statement data are often used in determining employee bonuses.
e e e e e e e e e



1e/e29

,3. Which group establishes financial accounting rules in the United States? Am
e e e e e e e e e e




erican Institute of Certified Public Accountants (AICPA)
e e e e e e




Financial Accounting Standards Board (FASB) International Ac
e e e e e e




counting Standards Board (IASB) e e e




Internal Revenue Service (IRS): Financial Accounting Standards Board (FASB)
e e e e e e e e




4. Which report is one of the three primary financial statements? St
e e e e e e e e e e




atement of the accounting cycle e e e e




Statement of management accounting Statement e e e e




e of cash flows
e e




Statement of stakeholder funds: Statement of cash flows
e e e e e e e




5. A company paid $5,000 cash in advertising costs.
e e e e e e e




How does this transaction affect the paying company's accounting equation? Ass
e e e e e e e e e e




ets decrease by $5,000; expenses increase by $5,000.
e e e e e e e




Assets increase by $5,000; expenses increase by $5,000. Asse
e e e e e e e e




ts decrease by $5,000; revenues increase by $5,000.
e e e e e e e




Assets decrease by $5,000; liabilities increase by $5,000.: Assets decrease by
e e e e e e e e e e




$5,000; expenses increase by $5,000.
e e e e




6. What is a transaction? e e e




2e/e29

, A type of commonly used accounting software A c
e e e e e e e e




ategory of merchandiser or retailer
e e e e




Two parties exchanging something of value
e e e e e




An example of an online business document: Two parties exchanging something of v
e e e e e e e e e e e e




alue

7. A company borrowed $80,000 cash from a bank.
e e e e e e e




How does this transaction affect the accounting equation of the borrowing
e e e e e e e e e e




3e/e29